Applicability of AS-16

AS 2231 views 3 replies

Whether AS-16 is applicable after Asset is capitalised or it will not be qualifying asset.?

Replies (3)

yes, AS16 is not applicable once asset becomes usable....

AS16 is applicable to those expenses that are spent for purchasing, constructing or bringing asset in use....

 

and m not sure, but according to definition of qualifying asset, an asset looses its quality of being QUALIFYING after its brought into use..

 

so for ur Q, answer will be, AS 16 will not b applicable, after asset is capitalised........

yes above mentioned answer is correct to the extent that once the assets is ready for its intending use or it has loose its identity as Qualifying assets it wont be capitalized but it will be capitalized again when an assets become an qualifying assets or substantial expansion is carried on.

Thanx Sanjeevji


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